AutoNation (NYSE: AN) and Casey’s General Stores (NASDAQ:CASY) are both mid-cap retail/wholesale companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, institutional ownership, risk, valuation, dividends and profitability.
Volatility and Risk
AutoNation has a beta of 1.4, indicating that its share price is 40% more volatile than the S&P 500. Comparatively, Casey’s General Stores has a beta of 0.59, indicating that its share price is 41% less volatile than the S&P 500.
This is a summary of current ratings and recommmendations for AutoNation and Casey’s General Stores, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Casey’s General Stores||0||6||5||0||2.45|
AutoNation presently has a consensus target price of $50.78, suggesting a potential upside of 8.80%. Casey’s General Stores has a consensus target price of $122.10, suggesting a potential upside of 13.01%. Given Casey’s General Stores’ stronger consensus rating and higher probable upside, analysts plainly believe Casey’s General Stores is more favorable than AutoNation.
This table compares AutoNation and Casey’s General Stores’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Casey’s General Stores||4.03%||12.70%||4.71%|
Earnings and Valuation
This table compares AutoNation and Casey’s General Stores’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|AutoNation||$21.53 billion||0.20||$434.60 million||$3.81||12.25|
|Casey’s General Stores||$7.51 billion||0.54||$177.48 million||$4.48||24.12|
AutoNation has higher revenue and earnings than Casey’s General Stores. AutoNation is trading at a lower price-to-earnings ratio than Casey’s General Stores, indicating that it is currently the more affordable of the two stocks.
Casey’s General Stores pays an annual dividend of $1.04 per share and has a dividend yield of 1.0%. AutoNation does not pay a dividend. Casey’s General Stores pays out 23.2% of its earnings in the form of a dividend. Casey’s General Stores has raised its dividend for 15 consecutive years.
Insider and Institutional Ownership
69.2% of AutoNation shares are owned by institutional investors. Comparatively, 98.0% of Casey’s General Stores shares are owned by institutional investors. 2.8% of AutoNation shares are owned by company insiders. Comparatively, 1.3% of Casey’s General Stores shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Casey’s General Stores beats AutoNation on 11 of the 17 factors compared between the two stocks.
AutoNation, Inc., through its subsidiaries, operates as an automotive retailer in the United States. The company operates through three segments: Domestic, Import, and Premium Luxury. It offers a range of automotive products and services, including new and used vehicles; and parts and services, such as automotive repair and maintenance, and wholesale parts and collision services. The company also provides automotive finance and insurance products comprising vehicle services and other protection products, as well as arranges finance for vehicle purchases through third-party finance sources. As of December 31, 2017, it owned and operated 360 new vehicle franchises from 253 stores located primarily in metropolitan markets in the Sunbelt region. The company was founded in 1991 and is headquartered in Fort Lauderdale, Florida.
About Casey’s General Stores
Casey’s General Stores, Inc. and its subsidiaries, operate convenience stores under the name Casey’s General Store in approximately 10 Midwestern states, in Iowa, Missouri, and Illinois. The Company also operates approximately two stores selling primarily tobacco products. The stores carry a range of food, including freshly prepared foods such as pizza, donuts, and sandwiches, beverages, tobacco products, health and beauty aids, automotive products and other nonfood items. The Company operates approximately 1,930 stores. It operates approximately two distribution centers, through which the Company supply grocery and general merchandise items to its stores. Its general store typically carries over 3,000 food and nonfood items. The Company’s stores sell regional brands of dairy and bakery products, and approximately 90% of the stores offer beer. Its non-food items include tobacco products, health and beauty aids, school supplies, housewares, pet supplies, and automotive products.
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